PENSION VITAL FOR OUR FUTURE, TAKE CARE OF IT

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Monday, 15 October 2012 22:48

The Arusha regional commissioner, Mr Magesa Mulongo, wants employers taken to task when they do not remit their workers’ monthly contributions to their pension funds. He is right on the ball. The rationale behind pension schemes is to provide a safety net for those who reach the retirement age of 55. All workers are entitled to a pension. Whoever usurps this right puts at risk their welfare. It is on this understanding that we support the call that the regional commissioner makes. The history of our pension funds does not paint a pretty picture.  Pensioners often have to put up with plenty of delays before they can gain access to the money, which in principle is theirs. And this against the backdrop of lack of transparency on how the funds are run! Secrecy surrounds contracts and operations at the institutions to such an extent that pensioners have no say in what the funds are committed to in their name. It is also to be expected that the pensioners should earn interest on what they contribute. The pension funds invest member contributions in a myriad projects. They do business using member contributions as their principal capital. Taking this into account, it is logical that members should be adequately compensated in the form of interest earned on the investment. Government remarks that it intends to undo amendments made to the Social Security Act implemented in April this year are heartening. This will not be sufficient if transparency, members’ voice and rightful interest are not factored into the savings accrued. Members of pension funds deserve to enjoy the maximum benefits from the contributions they make. They should be allowed to use their savings with the pension funds as collateral for loans from mainstream financial institutions. The scheme should be extended to all Tanzanians.  We urge the officials concerned to make haste to put in place mechanisms to include even those employed in the informal sector.